Calculations

Calculations in JustPerform are performed through business rules, which are parameter-driven functions within models that support common planning and accounting activities. Using logic, you define formulas that perform calculations on data for field members and models. Calculations are driven using a standard framework on the logic engine.

Business Rules: A business user-driven interface to set up parameters that drive different business rule calculations catering to standard business requirements in FP&A processes. These rules target common tasks required for business planning and consolidation functions.
Value Driver Tree: A visual, business-oriented designer for calculations. This includes formulas used to perform various planning calculations using basic mathematical functions as well as advanced functions on members, fields, and model data.

Purpose

Any business process is a set of activities. Each activity consists of a group of actions required to achieve a particular business objective. Business rules are functions defined for calculating and posting computed financial values in support of planning and consolidation activities, generating results as per rules driven by GAAP or FP&A processes.

Overview

The business rules on the platform are navigated under the Drive menu of the space explorer. Users can create, edit, and maintain different types of business rules.

Note: ALM Spaces have different calculation rules from the JustPerform space set of business rules.

Rule Types

Carry Forward

A business rule to help move the closing balances of the previous year to the current period. After uploading the entity financials (such as the income statement and balance sheet), this rule can be set up to carry forward the last year's closing balances to the current year's opening balance for the preparation of balance sheet data for consolidation. The carry-forward rule populates the opening balances for the current year with the closing balances of the prior year's last period.

Account Reclassification

This rule configuration helps define the rules that will reclassify balances from one source dataset to the target dataset. The dataset can be as simple as from one source account to another target account or as complex as a combination of field members like reclass account/flow/entity, etc., to target combinations. The system will auto-generate the mapping rules.

Currency Conversion

Currency conversion involves converting entity data from its respective local currency/functional currency to other reporting currencies or group currency for group reporting or consolidation purposes.

For consolidation, this ensures all entities from different local/functional currencies are converted to a common group currency for management reporting. Once converted to group currency, applying consolidation rules and reporting becomes feasible.

Intercompany Elimination (A)

This rule configuration helps users define intercompany matching rules. One of the key activities for group consolidation is intercompany elimination. The system should support transactions within different companies within a group that need to be reconciled and reported. These transactions should be eliminated at the group/subgroup level. For any differences between these transactions, the system will auto-generate and post the offset values to the defined offset account. All these can be set to defined fields as per business requirements.

Method

Eliminates transactions such as the sale of goods or services between entities within a group or subgroup. This means that related revenues, cost of goods sold, and profits are all eliminated. There could be P&L transactions as well as offsetting interest expense and interest income paid and received between entities within the group. The elimination entry is posted based on the method of elimination as explained:

Seller: By defining an intercompany elimination method as seller, it is assumed the seller-side transaction is the correct value. Hence, when eliminating seller and buyer transactions, any difference between the amount booked by the seller and buyer is posted to the buyer side.
Buyer: By defining an intercompany elimination method as buyer, it is assumed the buyer-side transaction is the correct value. Hence, when eliminating seller and buyer transactions, any difference between the amount booked by the seller and buyer is posted to the seller side.
Offset: In the case of offset, neither seller nor buyer amounts are given priority, and the difference between buyer and seller transactions is posted to a separate offset account.

Relationship

Offset Method:

Seller data is filtered and:
- Multiplied by the Elimination factor * -1 based on entity and intercompany relationship and posted to the seller account.
- Multiplied by the Elimination factor * +1 based on entity and intercompany relationship and posted to the offset account.
Buyer data is filtered and:
- Multiplied by the Elimination factor * -1 based on entity and intercompany relationship and posted to the buyer account.
- Multiplied by the Elimination factor * +1 based on entity and intercompany relationship and posted to the offset account.

Seller Method:

Seller data is filtered and:
- Multiplied by the Elimination factor * -1 based on entity and intercompany relationship and posted to the seller account.
- Multiplied by the Elimination factor * +1 based on entity and intercompany relationship and posted to the buyer account.

Buyer Method:

Buyer data is filtered and:
- Multiplied by the Elimination factor * -1 based on entity and intercompany relationship and posted to the buyer account.
- Multiplied by the Elimination factor * +1 based on entity and intercompany relationship and posted to the seller account.

Automatic Journal

Automatic journals are system-defined journal postings based on consolidation elimination rules defined according to the ownership structure, such as for subsidiaries and associates. Necessary postings are generated and posted for each execution of automatic journal rules. Automatic journals filter input data when applicable and when relationship conditions are met. Rules refer to consolidation and ownership models, with relationships between entities that transactions are posted against when consolidated at the group/subgroup level.

The Rules:

Apply Formula
Post Debit and Credit Entries to:
- Consolidation Model: Existing data is updated.
- Journal table: Existing data is updated.
- Audit table: Only delta records are posted.

Allocation

The allocation engine is a simplified and powerful rule engine for setting up complex allocation rules within the platform. The rule setup is business user-focused, easy to manage, flexible, and scalable. Allocation helps in redistributing source dataset values to single or multiple datasets based on driver values that determine how the values are allocated. Typical use cases include shared cost allocation, admin/marketing expenses allocation, product costing, profitability and cost analysis, cost distribution, and management reporting.

Account Mapping

Account mapping helps in transforming or copying source dataset values to a target dataset. It is beneficial for moving multiple datasets, aggregating them, and copying them to one target dataset. It is primarily used for simple cases like copying data.